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DRL gains on Glaxo's expense?

Dr Reddy's Laboratories scrip continued to be in the limelight, rising over eight per cent on Wednesday. The scrip was up on reports that GlaxoSmithKline would discontinue the development of an experimental drug for diabetes. Dr.Reddy's is in an advanced stage of clinical trials for anti-diabetes drug and Glaxo withdrawal will leave market open to Dr. Reddy's. DRL has licensed the anti-diabetes molecule to the Denmark pharma company Nove Nordisk. DRL woule be getting a royalty fee of around 10 per cent of the total sales from the Danish firm. The rise in the stock price was also on account of no-delivery period ending today on the NSE for stock spilt. The Rs 5-face value (split from Rs 10-face value) shares ended 8.25 per cent higher at Rs 1,082 on the NSE. On the BSE it closed Rs 1,082, up 8.27 per cent. Whether the sellers will get the Rs 5 face value shares by tomorrow in their account is uncertain, dealers said.

Last quarter worry at Satyam

The profit guidance given by Satyam Computers management on Wednesday for the third quarter left a number of analysts concerned over the future financial performance of the company. Analysts expect the company to report a lower net profit for the fourth quarter. This factor put a lot of selling pressure on the company's scrip. It was down 8.81 per cent at Rs 148.05 on the BSE and at the NSE it closed at Rs 148.70, down 8.35 per cent. The trading volume too increased sharply with the volumes doubling fro m Tuesday.

Alliance bullish on Balaji Tele

Alliance Capital looks bullish on Balaji Telefilms. After increasing its stake to over five per cent in the company, the mutual fund was again at it, buying the scrip. Large quantity of shares were bought by the fund on Wednesday. The scrip continued on its upward move and ended 3.11 per cent higher at Rs 265 on the BSE. On the NSE it closed at Rs 255.60, up 1.34 per cent.

Virendra Verma